Water Damage & Home Insurance

Homeowner Caused Water Damage

• If the water damage is in any shape or form caused by the negligence of the homeowner an insurance company will most likely deny the claim. An example of this is leaving your home's heater off resulting in a burst pipe, and a flood. Since it was your negligence that caused the damage it will not be covered.

Damage Insured

• If the damage is not due to the negligence of the homeowner then the insurance company may pay for the water damage. However, it will not pay to fix the cause of the damage. If this happens to be a broken water pipe in your house than you will owe on the repair out of pocket. According to Don Griffin of the Property Casualty Insurers Association of America,"Generally, the damage caused by water will be covered, but whatever causes the damage--say, a leaking dishwasher hose--may not be."

Is the Damage Worth the Claim?

• Insurance companies will consider dropping your policy if multiple flood policies are claimed within a short period of time. This is due to the risk of mold developing, resulting in an expensive payout for the insurance company. According to Kiplinger,"In a study by the California Insurance Department, 25 percent of the companies refused to renew the policies of customers who made one or two nonwater-damage claims in the past three years." Avoid sending in a water damage claim if you can afford to pay for it yourself, it may result in your insurance dropping your policy, which could cost a lot more in the long run.